Diversity and Conflict Management in Construction CON305
- Subject Code :
CON305
Diversity and Conflict Management in Construction: A Comparative Study with the Automotive Industry
Table of contents
Chapter 2 Critical Literature Review 8
- Social Identity Theory 9
- Intergroup Contact Theory 9
- Conflict Management Styles 10
- Organisational Culture 10
Chapter 3 Proposed Research Design and Methods 15
- Research Design and Epistemological Stance 15
- Operationalisation of Research Questions 15
- Sampling and Recruitment Strategy 16
List of Figures
Figure 1 Results from G*Power Software 17
Chapter 1 Introduction
1.1 Background
In industrialised countries, workforce diversity is becoming a reality due to the increasing mobility of workforce around the world, which inevitably leads to conflict (Bleijenbergh et al., 2010). This conflict requires skills and strategies to manage it, especially industries like construction and automotive, where project-oriented and team-based work is central. in 2023, the construction sector employed approximately 08 million workers in the U.S (Jones, 2023), while automotive employed a significant 1.7 million people (Ariella, 2023). It is noticed the workforce size in the automotive is less than a quarter of the construction indicating the specialized focus of the automotive industry. while the construction industry is depending on a large proportion of skilled and unskilled requirements (Loosemore et al., 2010). Both sectors share similarities in their high-risk manufacturing, assembly operations, complex supply chains, and operating in a global environment, where cross-functional teams collaborate across geographic and cultural boundaries. While the construction sector is unique in its diverse perspectives on project delivery, which is often complicated by a diverse workforce, high turnover, and the temporary nature of many projects (Loosemore et al., 2010; Roberson, 2019). In the construction industry, there is a strong reliance on migrant workers and a need for greater diversity. As of 2022, only 10.9% of the construction workforce were women, indicating a significant gender imbalance (Schoen, 2024; Staff, 2024). Just 5.4% of construction workers are from Black, Asian, or ethnic minority backgrounds, compared to 13.8% of the UK population (Construction Industry, 2020). The construction industry faces challenges in attracting and retaining a diverse workforce, including people from various ages, genders, cultures, and heritages (Construction Industry Culture, 2020). The automotive industry also
faces diversity challenges, However, both industries could benefit from increased diversity. Research shows that companies in the top quartile for ethnic and racial diversity among management are 35% more likely to achieve above-average financial returns (Staff, 2024). A more diverse workforce can lead to increased innovation, improved decision-making, and better problem-solving abilities (Schoen, 2024). Mandatory training on unconscious bias and cultural sensitivity, collaboration with diversity-focused organizations and implementing mentorship programs to support underrepresented groups can improve diversity and inclusion (Staff, 2024). The construction industry, known for its project-oriented nature, hiring teams on a temporary basis, which results in high turnover and a diverse range of cultural, professional, and operational backgrounds. The temporary teams are always under intense pressure due to project deadlines, which can exacerbate conflicts arising from different styles of tasks, communication, and leadership (Loosemore et al., 2010). In contrast, the automotive industry is an industry within a more stable, process-driven structure, where teams often have long-term roles and follow systematic processes within large-scale manufacturing environments. However, teams in the automotive industry are similar to teams in the construction industry with their cultural diversity as well. This may be due to the global nature of automotive production, as well as the different role expectations, work patterns and communication norms of these teams, which are likely to be a potential source of conflict. As a result, addressing the practical problem of managing these conflicts in the context of a multicultural workforce is essential to maintaining operational efficiency and cohesion in both industries.
1.2 Research aim and objectives
This research intends to examine the effect of cultural diversity on the conflict dynamics in the construction and automotive industries. Specifically, it addresses the following research questions: (1) How does cultural diversity impact the occurrence and nature of conflicts within
the construction and automotive industries? (2) What are the similarities and differences in conflict management strategies employed in these sectors? (3) How does organisational culture affect conflict resolution practices in each industry? By investigating these questions, the research may accomplish several objectives. First, it will identify the impact of diversity on workplace conflicts in each industry, providing insight into how multicultural environments shape conflict dynamics. Second, it will compare conflict management approaches in the construction and automotive industries, highlighting sector-specific practices. Finally, the research will offer recommendations to improve conflict resolution techniques, aiming to create more cohesive and productive work environments. The research questions are linked to academic findings of previous research that highlighted that cultural diversity can significantly impact workplace conflicts due to differences in values, communication styles, and work expectations (Gibson et al., 2019; Liu et al., 2020). Other studies have confirmed that cultural diversity impacts workplace conflicts, as differences can lead to weakness and tension, However, it can also stimulate creativity and enhance productive team performance if conflict is managed effectively, and that conflicts in diverse environments require specifically designed management approaches to contribute positively to organisational outcomes (Jehn & Bendersky, 2003).
1.3 Methodology
The research will employ a quantitative methodology, gathering data through an online survey aimed at approximately 160 participants across both industries. This sample will include employees from various levels of management and departments, providing a broad perspective on conflict management within diverse teams. The target respondents include workers and managers who actively engage in conflict resolution, making them well-positioned to offer insights into the real-world challenges and strategies that influence team cohesion and
productivity in each sector. Statistical analysis will be applied to assess the relationship between diversity and conflict management, enabling a comparative examination of strategies across the construction and automotive industries.
1.4 Research contributions
This research offers both academic and practical contributions to the studies of diversity and conflict management. Academically, this research adds to the significant gap in comparative analyses of conflict management strategies between a project-oriented sector such as construction and a process-oriented sector such as automotive. The current literatures often examine conflict management in industries individually, however, there is limited research comparing these two sectors (Jehn & Bendersky, 2003; Bleijenbergh et al., 2010; Loosemore et al., 2010; Gibson et al., 2019; Roberson, 2019; Liu et al., 2020; Jones, 2023). It is also possible that the findings of this research will enrich the academic understanding of how industry-specific factors, including organisational and operational culture, influence the effectiveness of conflict management practices in conflict environments such as construction and automotive. Practically, the research hopes to provide practical insights to industry practitioners by examining the strategies designed for each industry and comparing them to each other. The research recommendations can help construction and automotive industries to improve team dynamics, reduce the negative impact of conflicts, and provide a less conflict- free work environment. For example, strategies from the structured and systematic conflict management approaches in the automotive industry can be adapted to benefit other project oriented as the construction industry. Therefore, the research can add value to those seeking to enhance productivity, collaboration, a multicultural and harmonious work environment.
Chapter 2 Critical Literature Review
The construction and automotive industries while distinct in their operations, share common challenges related to workforce diversity and conflict management. The research indicates that organizational structure plays an important role in shaping the nature of diversity-related conflicts. In the construction industry, teams are typically temporary and project-driven, which can exacerbate conflicts due to a lack of long-term cohesion and shared norms (Loosemore et al., 2010). This study hypothesizes that (H1) cultural diversity in teams is more likely to result in conflict within the construction industry because of the temporary, project-driven structure of team compositions. In contrast, the automotive industry, with its stable and long-term team structures, provides a more conducive environment for fostering a positive diversity climate. Studies suggest that such climates reduce interpersonal tensions and improve productivity (Hofhuis et al., 2016; Team, 2023). Thus, this research posits that (H2) a positive diversity climate in the automotive industry reduces conflict and enhances productivity, given the stable, long-term nature of team structures. Conflict management strategies also differ between these industries due to their operational frameworks. In the automotive industry, formalized conflict management approaches are often implemented to align with its process-driven and hierarchical structure (Malji & Warke, 2021; Consulting, 2023; Zinfi, 2023). Conversely, the dynamic and high-turnover nature of construction teams necessitates more flexible and adaptive strategies (Gorse, 2005; Oerle, 2022; ConstructConnect, 2023; Pathways, 2023). Consequently, this study hypothesizes that (H3) Conflict management strategies are more formalized in the automotive industry than in construction, reflecting structural differences between project-based and process-driven industries. Finally, a strong, inclusive culture promotes understanding and mitigates tensions arising from diversity, whereas a fragmented culture may amplify such challenges (Shore et al., 2011; Nishii, 2013). This leads to the
hypothesis that (H4) Organisational culture moderates the relationship between diversity and conflict management effectiveness, with inclusive cultures leading to lower conflict rates in both industries.
2.1 Theoretical Frameworks
The study is grounded in key theoretical frameworks to understand the relationship between diversity and conflict management within the construction and automotive industries, and all of which are integral to understanding the mechanisms behind diversity-related conflicts and their resolution.
2.1.1 Social Identity Theory
This theory proposes that individuals gain a sense of identity and connection through their association with different social groups (SenGupta et al., 2024). In diverse workplaces, individuals may associate with multiple social groups, which can bring about both beneficial and challenging outcomes (Eagly et al., 2004). For instance, in the construction industry, project teams are often formed on a temporary basis, bringing together individuals from different cultural and professional backgrounds. This can result in in-group and out-group dynamics, where employees favour their own group while developing biases or misunderstandings toward others. Similarly, in the automotive industry, where teams often operate within globalised environments, conflicting social identities can emerge due to cultural or geographical divides. The theory will allow for an exploration of how group memberships influence conflict and the effectiveness of conflict resolution strategies.
2.1.2 Intergroup Contact Theory
This theory suggests that more frequent interaction among various social groups can lessen prejudice and discrimination. By promoting intergroup interaction and understanding,
organisations can foster a more inclusive and harmonious work environment (Okyere- Kwakye et al., 2019). In construction teams, where employees often work on short-term projects, opportunities for meaningful contact may be limited, exacerbating stereotypes or biases. Conversely, in the automotive industry, long-term team structures provide greater opportunities for intergroup contact, which may enhance understanding and reduce conflict over time. This theory will help explore whether differences in team structures across the two industries influence the frequency and intensity of diversity-related conflicts.
2.1.3 Conflict Management Styles
Various styles can be used to address conflict, including avoidance, accommodation, competition, compromise, and collaboration (Trudel & Reio, 2011). The choice of conflict management style can significantly impact the outcome of a conflict situation. Each style carries implications for how conflicts unfold and are resolved. For instance, collaborative approaches are often seen as the most effective in diverse teams, as they emphasize mutual understanding and problem-solving (Trudel & Reio Jr, 2011). However, the effectiveness of a particular style may vary depending on industry-specific factors. In construction, where tight deadlines and high-stress environments prevail, managers may resort to avoidance or compromise to resolve conflicts quickly. In contrast, the automotive industrys structured processes may encourage more formalized and collaborative approaches to conflict resolution.
2.1.4 Organisational Culture
The shared beliefs, behaviours and values among any organisation can shape the ways diversity and conflict are understood and addressed. (Schein & Schein, 2017). A strong organisational culture can promote diversity and inclusion, while a weak culture can exacerbate conflict. For example, organizations with a strong culture of inclusion are more
likely to implement proactive diversity management policies, such as cultural sensitivity training and inclusive leadership practices. In the construction industry, where teams are often transient and drawn from external contractors, the organizational culture may be fragmented, making it difficult to establish consistent norms for conflict resolution. In contrast, the automotive industry, with its stable, long-term teams, benefits from more cohesive cultural values that can support structured approaches to diversity and conflict management. This is highly relevant to the study as it helps explore how cultural differences within organizations influence the perception and resolution of conflict.
2.2 Theoretical Background on Diversity in Organisations
The presence of the cross-functional teams was a result of the inevitability of globalization in the 21st century, which lead to boost the diversity. Empirical research indicates that the link between diversity and performance depends on specific conditions such as team climate and the nature of tasks and diversity leads to superior outcomes only when managed with intentional strategies that foster inclusion and encourage the integration of diverse ideas (Adekiya & Oluyemisi; Van Knippenberg et al., 2020). This finding is relevant to both the construction and automotive industries, where culturally diverse teams often work under high- pressure conditions. Gibson et al. (2019) argue that formalizing processes such as implementing codified rules and procedures for behavior and task assignments helps to manage conflict by balancing the need for both coordination and flexibility. Thus, manage cultural differences effectively and reduces misunderstandings.
2.3 Diversity and Conflict in the Construction Industry
The construction industry mostly assembles project-based teams with high turnover and diverse cultural backgrounds. This structure makes the industry particularly vulnerable to conflicts arising from differences in communication, work styles, and cultural values. Liu et al.
(2020) debated that cultural differences can lead to significant conflicts in technology, norms, and emotional responses within international construction teams, influenced by national cultural differences. Thus, can impair project performance. Lee et al. (2023) argue that project coordinators in the construction projects encounter risks due to cultural and linguistic differences. This includes variances in terminology, gestures, and decision-making approaches, which can hinder communication and lead to misunderstandings among stakeholders. The temporary nature of construction contributes to unique challenges in conflict management, as interpersonal conflicts arise from cultural differences and high workforce turnover. This environment, characterized by short-term labour arrangements, intensifies issues like communication breakdowns, which complicate conflict resolution on-site (Clarke & Gribling, 2008). As a result, effective conflict management strategies are essential for maintaining productivity and team cohesion in construction, where deadlines and diverse perspectives can increase the likelihood of conflict.
2.4 Diversity and Conflict in the Automotive Industry
The automotive industry, although more stable in its team structures, also encounters diversity- driven challenges due to its globalized operations. Yamauchi and Sato (2023) argue in his study about diversity in automotive study in Japan that it can both promote cognitive conflict, enhancing resilience, also may lead to dysfunctional conflicts, particularly in areas where diverse educational backgrounds do not align well with organisational goals. The diversity climate in the automotive structured environment production misunderstandings and conflicts can disrupt operational efficiency. Some countries, such as the Czech Republic, have begun to embrace diversity as a component of sustainability and corporate responsibility (Velinov & trach, 2022). It can be inferred that the systematic structure of the automotive industry takes a more formal approach to conflict management, in contrast to the more flexible
strategies and positions often required in construction.
2.5 Comparative Analysis of Conflict Management Strategies
The construction and automotive industries differ significantly in their approaches to conflict management, shaped by their unique organisational structures (Dainty et al., 2007). The construction and automotive industries share many similarities, there are also some key differences in their approaches to diversity and conflict management. For example, the construction industry may be more prone to interpersonal conflict due its project-based nature and hierarchical structure (Texas, 2024). while the automotive industry may face more intergroup conflict between different departments or divisions. This refers to that conflict management frameworks shall be special tailored and suited to each industrys structural and operational demands (Bresnen & Marshall, 2000).
2.6 Organisational Culture and Conflict Management
Organisational culture is essential in shaping conflict management practices, particularly in diverse teams, a strong organisational culture that values inclusivity can act as a buffer, reducing potential conflicts in culturally diverse teams. In construction, where team compositions are frequently temporary, fostering a cohesive culture is challenging. However, the leaders in project-based industries can foster a temporary inclusive culture through leadership training and conflict resolution workshops (Lee et al., 2023). In the automotive industry, the influence of organisational culture is more established, providing a supportive foundation for systematic conflict management practices that enhance team cohesion and productivity.
2.7 Debates and Gaps
There are many ongoing debates in the literature on whether diversity leads to conflict or if it is primarily the organisational environment that determines the impact of diversity. Some research argue that a positive diversity climate mitigates conflict by fostering inclusivity and reducing misunderstandings (Edirisinghe et al.; Jehn & Bendersky, 2003; Clarke & Gribling, 2008; Bleijenbergh et al., 2010; Al-Bayati et al., 2018; Gibson et al., 2019; Roberson, 2019; Liu et al., 2020; Van Knippenberg et al., 2020; Velinov & trach, 2022; Iatridis et al., 2023). Others, suggest that in high-turnover environments like construction, diversity can exacerbate conflict unless managed effectively (Loosemore et al., 2010). There is a general agreement on the importance of conflict management and is limited research comparing industries with different team structures, such as construction and automotive.
Chapter 3
Proposed Research Design and Methods
This chapter outlines the methodological approach used to examine the relationship between cultural diversity and conflict management strategies within the construction and automotive industries. The research design including the epistemological approach, data collection, sampling strategy, and ethical considerations. The research focuses on using quantitative methods through an online survey to examine the impact of cultural diversity on conflict in these industries.
3.1 Research Design and Epistemological Stance
This research adopts a positivist epistemology, supported by a deductive approach, as it aims to test established theories of diversity and conflict management. The quantitative methods align with the need for objective measurements and statistical analysis to identify patterns and correlations between variables (Saunders, 2017). Positivism provides robustness in testing hypotheses and generating generalizable data, albeit with some limitations in capturing deeper contextual insights, which are more accessible in qualitative designs (Saunders, 2017).
3.2 Operationalisation of Research Questions
The researchs conceptual questions rotate around the role of cultural diversity in influencing conflict management in both industries construction and automotive across Europe and North America. This includes all organisations that have operations in these regions even if their headquarters are outside the geographical scope of the research. These questions can be operationalized into measurable variables, with the primary constructs being cultural diversity, conflict occurrence, and conflict management strategies. Constructs could be identified from previous literature, utilizing validated scales where applicable to enhance
reliability (Bryman & Bell, 2015). For instance, diversity was measured across demographic (e.g., ethnicity, gender) and experiential (e.g., work experience) factors, while conflict management strategies were categorized into avoidance, accommodation, collaboration, and compromise. In other meaning, the operationalization of these constructs is translating the research questions effectively into quantifiable measures. For cultural diversity, demographic and experiential factors are assessed through structured survey items designed to capture variations in team composition and participant backgrounds.
3.3 Sampling and Recruitment Strategy
Given the constraints on time and resources, data collection will be conducted solely through an online survey. This approach allows for efficient reach and data collection from a wide demographic, which is essential given the focus on two distinct industries (construction and automotive).
3.3.1 Sample Size Calculation
A well-defined sampling strategy is essential to guarantee that the findings of the study are statistically reliable and representative of the target population within the construction and automotive industries. The sample size for this study has been determined using G*Power software version 3.1.9.7, based on the expected effect size, desired power, significance level, and the studys research objectives.
Sample Size Calculation (G*Power)
To determine an appropriate sample size, the following parameters were used in G*Power:
Test Type: Independent Samples
- t-Test:This test compares means between construction industry as first group and automotive industry as second group.
Input Parameters:
- EffectSize (d): Medium (d=0.5), based on Cohens guidelines for detecting meaningful differences (Cochran, 1977).
- SignificanceLevel (?): 05 (95% confidence level).
- Power(1??): 80 (80% power), ensuring a high probability of detecting an effect if it exists.
- AllocationRatio: Equal group sizes (1:1).
3.3.2 Adjustments for Feasibility
To achieve reliable and robust outcomes, the target sample size will be expanded to 160 participants, providing an additional margin to account for potential non-responses or incomplete surveys. This sample size aligns with practical constraints while maintaining statistical power and confidence in the findings. The aim of Increasing the sample size not only mitigates the risk of low response rates but also fosters the precision of the study's statistical estimates. By including a larger number of participants, the research reduces the standard error of the mean, leading to more accurate comparisons between the construction and automotive industries. Additionally, oversampling helps ensure subgroup representation, especially for diverse demographic factors such as ethnicity, gender, and professional roles.
3.4 Recruitment Strategy
Participants will be recruited through targeted outreach in the construction and automotive industries using frameworks of channels, eligibility and incentives. The Channels will be professional networks on LinkedIn, Industry-specific forums and associations, and direct outreach through email to organizations involved in project-based work. Participants shall work in culturally diverse teams and have at least one year of experience in project-based roles within the construction or automotive industries. There are not assigned incentives for the survey. It is worth noting that, recruitment efforts will focus on ensuring diversity in the sample by reaching out to individuals from varying organisational roles, including managers, supervisors, and team members. This diversity is important for the research to capture a comprehensive understanding of how conflict management strategies differ across hierarchical levels and perspectives. To maximize participation, the outreach materials will highlight the
relevance of the study to participants professional contexts, emphasizing its potential contribution to improving diversity and conflict management practices in their industries.
3.5 Response Rate and Oversampling
Given the typical response rate for online surveys (1030%), the survey will be distributed to approximately 5001,000 potential participants to achieve the target of 160 completed responses. To optimize the quality and reliability of the data, oversampling will be applied to the research. Oversampling ensures that sufficient data is collected even if response rates are on the lower end. While oversampling increases recruitment efforts, it provides a safeguard against potential biases caused by low response rates and ensures that the final dataset is robust and representative.
3.6 Setting and Population
The research will be conducted online, targeting respondents from various geographic locations. The online setting will provide the accessibility and inclusivity, allowing participants from different regions and organizational backgrounds to contribute their experiences. Which may be particularly advantageous for capturing the globalized nature of the automotive industry and the diverse team structures within the construction sector. Targeting project-based professionals and focusing on those actively involved in managing or experiencing diversity- related challenges will ensure the relevance of the collected data. Additionally, this setting provides flexibility for participants, enabling them to complete the survey at their convenience, which can improve response rates.
3.7 Ethical Considerations
Ethical principles will be strictly adhered to throughout the study including informed consent, confidentiality, and anonymity as well as the data storage. Participants will receive a
comprehensive explanation of the study's objectives, the intended use of their data, and their right to withdraw at any time without consequence. Data collected will be anonymized to ensure participants' privacy. Identifiable information will not be linked to responses, and data will be stored securely, complying with the University of Hulls ethical standards. Data will be encrypted and stored on secure servers for the duration of the research. Upon project completion, data will be retained only for the timeframe mandated for only one year. Informed consent will be obtained electronically, the participants required to acknowledge that they have read and understood the study details before proceeding with the survey. This ensures compliance with ethical guidelines while maintaining transparency about participant rights and data use. Confidentiality measures will extend to data reporting, where only aggregated results will be presented to safeguard individual privacy. Ethical approval for this study will be submitted to the University of Hull prior to data collection, reinforcing adherence to institutional and regulatory ethical standards.
3.8 Research Tools and Data Analysis Plan
The primary tool for data collection will be an online survey platform, such as Microsoft forms or Google Forms, which supports structured data gathering and statistical analysis. The survey design includes validated instruments where applicable to ensure consistency and reliability across responses (Pallant, 2020). The data analysis plan consists of descriptive Statistics by summarizing the sample characteristics and preliminary insights into diversity and conflict patterns within each industry to provide an overview of respondent demographics and diversity metrics within the sample. Further, the study will employ inferential statistics to test the hypotheses and relationships between variables. To determine the extent to which diversity influences conflict and the moderating role of organizational culture, regression analysis will be used to examine the predictive relationships between diversity metrics (e.g., demographic diversity, diversity climate) and conflict management outcomes, while controlling for industry-
specific factors. For hypothesis testing, t-tests and ANOVA could be applied to compare diversity-related conflict levels and management strategies across industries.
3.9 Validity and Reliability
To address validity and reliability, three measures will be implemented. First, construct validity will be implemented through a survey which will use established scales and question structures from prior validated research, ensuring alignment between the theoretical constructs and their measurements. Secondly, by applying the Internal Consistency as reliability will be assessed using Cronbachs alpha to confirm consistency in responses across related survey items. A threshold of 0.70 will be maintained for acceptable reliability. Third and lastly, A pilot test will refine the survey questions, address ambiguities, and confirm that scales function effectively. This testing phase will also ensure the reliability of responses across diverse demographic groups within the sample.
3.10 Limitations of the study
This studys reliance on an online survey as the sole data collection tool limits the depth of insights, as qualitative methods are not included. Self-reported data may be prone to biases, including the tendency to give socially acceptable answers or errors caused by imperfect recall (Yaqub et al., 2024). The cross-sectional design restricts causality analysis, and the target sample size of 160 participants, while adequate for statistical analysis, may limit generalizability to smaller firms or regions outside the selected geographic scope. However, I hope that the analysis and interpretation of the results that will be done in this research will address the limitations we mentioned.
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